Publicis Groupe SA : Is the distribution phase coming to an end ?

07/04/2022 | 02:34am EDT

long trade Stop-loss triggered

Entry price : 44.6€ | Target : 52€ | Stop-loss : 43€ | Potential : 16.59%

The price of Publicis Groupe SA shares is range-bound. This phase will end sooner or later when volatility comes back. Investors have an opportunity to buy the stock and target the € 52.

Summary

• The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
• The company presents an interesting fundamental situation from a short-term investment perspective.
• According to Refinitiv, the company's ESG score for its industry is good.

Strengths

• The company is in a robust financial situation considering its net cash and margin position.
• Given the positive cash flows generated by its business, the company's valuation level is an asset.
• The company is one of the best yield companies with high dividend expectations.
• Over the last twelve months, the sales forecast has been frequently revised upwards.
• Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
• For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
• The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.

Weaknesses

• According to forecast, a sluggish sales growth is expected for the next fiscal years.
• The average consensus view of analysts covering the stock has deteriorated over the past four months.

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